Fewer SA households now save

HIGH levels of over-indebtedness will not decline soon in South Africa since the number of saving households have declined over the last year, inaugural Old Mutual Savings Monitor research revealed yesterday.

HIGH levels of over-indebtedness will not decline soon in South Africa since the number of saving households have declined over the last year, inaugural Old Mutual Savings Monitor research revealed yesterday.

The nationwide research was conducted in 1000 metropolitan households with the aim of "looking at the trends" of consumers and their attitudes towards spending.

According to the findings, the awareness of the "need to save" did not necessarily influence positive savings behaviour, nor did the fear of not having enough savings for the rainy days.

Crispin Sonn, director of corporate affairs at Old Mutual South Africa, said "poor financial habits" were the foundations of poor money management.

The savings monitor also revealed that informal savings institutions such as stokvels and clubs emerged as popular savings vehicles among black households.

Sonn slammed financial institutions for "having made credit easy to attain" in the past, which resulted in the demise of the saving culture. - Kea' Modimoeng

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